S&P Dances With Key Area While Other Assets Raise Eyebrow

KRE, bonds, the US Dollar. what are they saying?

Technical Edge 

• NYSE Breadth: 66% Upside Volume 

• Advance/Decline: 60% Advance 

• VIX: ~$17.50

I am curious about if and when it will matter that the US dollar (DXY) and 10-year yields (TNX) continue to push higher. Both are at multi-month highs, yet the S&P continues to plow higher. 

Even more interestingly, there seems to be a rotation out of typical safety stocks (MCD, WMT, etc.) and into growth stocks. That can be seen by yesterday’s action in ARKK, where it rallied almost 5% on its highest volume since March 31st. 

Love ARKK or hate it, it’s a good proxy for growth stocks and yesterday’s daily chart gave bulls a darn good close. But it’s flying in the face of conflicting signals. 

S&P 500 — ES

• Pivot: 4200

• Upside Levels: 4220, 4242-45

• Downside levels: 4186-4190, ~4175, 4150-55

SPY